By April Hunt
The Atlanta Journal-Constitution
Investors have shown considerable interest in making sure DeKalb County residents don’t have to boil their water.
The county found more than enough buyers for the $381 million of water-sewer bonds it sold Monday, earning a nearly $30 million premium on the deal. After fees, the county will soon have more than $405 million of investor money to start the $1.35 billion overhaul of its aging, and failing, system next year.
“We think we have a very favorable outcome,” county Finance Director Joel Gottlieb told commissioners, who approved finalizing the sale Tuesday.
The sale is something of a turnaround for DeKalb, which saw its bond ratings plummet after ending last year with just $12 million in reserve, less than a third of the $40 million that cover’s a month’s expenses.
Standard & Poor’s Financial Services and Moody’s Investor Services have since upgraded DeKalb's bond ratings, with S&P’s decision released late last month. Higher ratings make it easier for municipalities to borrow money and at lower interest rates.
The county will pay 4.6 percent interest on the bonds sold Monday, just slightly higher than the 4.58 percent it paid in its 2006 sale of water and sewer bonds. With interest, that means DeKalb water utility users will pay back $767 million over the next 30 years.
full story at ajc
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